One of my more complex recent cases involved a foreign national, a leasehold house and an astonishingly good rate. I managed to secure a mortgage at 75% LTV for a non-resident US national on a very unusual residential property.
My client in this instance was a US national who was not currently living in the UK. He worked as a lawyer at a large international PLC. To make things more complicated, his income was a mix of basic salary, bonus and profit share.
His ties to this country were thanks to his wife, a British national. She was living permanently in the UK with their children – all of whom were being schooled over here. Although he was kept overseas by work, the family’s permanent base was in the UK, and hence it was here that they wanted to buy a property.
He was looking to raise finance to purchase a beautiful £2.4m family residence. So far so straightforward. Very unusually, however, the property was a leasehold house with only 41 years remaining on the lease. The short leasehold, his status as a non-resident foreign national, and his complex income structure was not an attractive mix for any prospective lender.
We, of course, were unfazed. I went straight to a lender with whom I have a long-standing professional relationship, who I felt would take a favourable view of the case. They were happy to proceed and I managed to secure a loan of £1.8m for my client, at 75% loan to value (LTV). It was agreed that it must be reduced to 50% over the next 5 years; but the bank also agreed to lend my client the £600,000 he needed to buy the freehold as soon as he was able. At this point, the loan will be restructured, and the mortgage term extended to 25 years.
We agreed upon a rate of 2.5%, fixed for 2 years, which was an extraordinarily good result for my client. He was delighted, and his family are now settling into their new home.